Chinese Shares Rise on Tech Optimism, Index Rebalancing; Far East Smarter Energy Jumps 10%
Chinese shares rose on Tuesday, supported by a rally in technology stocks and the upcoming index rebalancing.The Shanghai Composite Index, the main gauge of Chinese stocks, rose 0.4% to 4,075.10. The Shenzhen Component Index went up 1.6% to 15,591.13.Markets are balancing renewed geopolitical risks from the U.S.-Iran war against continued enthusiasm for artificial intelligence-driven growth and technology investment," Reuters reported, citing Robert Savage, head of markets macro strategy at BNY.Meanwhile, China is the only major emerging market drawing investment into its equity, bond, and currency markets, Savage added.Also, boosting sentiment is China's upcoming semi-annual index rebalancing.According to Goldman Sachs estimates, adjustments to major CSI and CNI indexes scheduled for June could trigger over $48 billion in gross two-way passive investment flows, Reuters reported. The adjustments will raise the representation of information technology, telecommunications, and industrial companies.In company news, Far East Smarter Energy (SHA:600869) and its subsidiaries won contracts of about 1.80 billion yuan in May. Shares of the wire and cable manufacturer closed 10% higher Tuesday.
